Zcash Shielded Supply Hits Record High Amidst Market Downturn: On-Chain Signals Point to Strength
Zcash (ZEC) is defying the broader market slump, with its shielded supply hitting an all-time high of 5.1 million ZEC. This surge, coupled with record network hashrate and strong derivatives demand, signals robust underlying fundamentals for the privacy coin.
Zcash is bucking the trend while Bitcoin, Ethereum, and Solana bleed. The privacy coin's price action is being driven by solid on-chain metrics, not just market sentiment. Its shielded supply, representing private transactions, has surged to a new record of 5.1 million ZEC, with the Orchard pool leading the charge. This growth aligns with the narrative of privacy as a hedge against increasing regulatory scrutiny on transparent blockchains.
Further bolstering ZEC's strength is a record network hashrate, indicating increased miner commitment and network security. Miners are doubling down even with the recent halving, suggesting confidence in future profitability. This robust network activity underpins the growing demand for shielded transactions.
On the derivatives front, Zcash is showing significant net buying pressure on platforms like Hyperliquid, a stark contrast to the selling seen in major cryptocurrencies. The annualized funding rate for ZEC is exceptionally high, indicating traders are willing to pay a premium to stay long, signaling strong conviction. However, this overheated funding rate could also signal a potential short-term reversal if momentum falters.